Reduction in petrol price to start reflecting within the week – PETROAN

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says Nigerians should expect a reduction in the pump price of the product within the week.

Last week, the Nigerian National Petroleum Company (NNPC) Limited and the Dangote Refinery reduced the ex-depot price of petrol to N899 per litre in Lagos. Despite the announcement, many fuel stations have continued to sell at N1015 per litre.

While speaking on Channels TV this morning, the President of PETROAN, Billy Gilly-Harry, said the new cost of the commodity will take effect this week.

“But I believe from today when members start loading from both NNPC and Dangote at this new price reduction, it will reflect in the market. But also they’ll give kudos to some of our members, some of the leaders in PETROAN, you know, that have done so well, especially in Abuja, for even reducing their prices to below N1,000 before even this announcement.

So, we don’t encourage our members to try to sell products at a loss, because our focus is to serve Nigerians. And the only way we serve Nigerians is that we have the resources to be able to do that. That resource can only be there if we’re making marginal profit enough to pay for the cost of money and make sure that we continue to, you know, do business. So, never mind, you’ll see the translation of this reduction of prices in the retail outlets hopefully within the week.”

He said the inability of members to sell in line with the new ex-depot price is due to some of them having old stocks that were bought at higher prices.

“So, this reduction, if you apply it immediately, don’t forget that some of them bought at 970, paid transportation costs and logistics that have taken it quite high. So, by the time it gets to their retail outlets, it’s quite much more than that. And so they must also sell at a profit – minimal marginal profit as provisioned by the PIA. So, That’s the reason.”